tag:blogger.com,1999:blog-1327817963221003960.post5014843322899897963..comments2022-06-25T16:50:45.743+01:00Comments on Boss M&A Whispers: “Never interrupt your enemy when he is making a mistake”Mark Edwardshttp://www.blogger.com/profile/00520213352119926977noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-1327817963221003960.post-68486445577120117002009-02-28T09:30:00.000+00:002009-02-28T09:30:00.000+00:00Thanks for your comments and I think they are well...Thanks for your comments and I think they are well made. However, what I do and what Document Boss is basically "Deal Makers" in this sector. I don't want to be perceived as an analyst. I want this blog to be my thoughts predominantly around the mergers and acquisitions opportunities within our sector and also reflect on some of the reasons that I believe that acquisitions could be conducted in a manner that would produce much higher results than we have been seeing. <BR/><BR/>Saying that I do wholeheartedly welcome further input and comments such as yours that may want to put forward their more detailed thoughts looking at the companies in a more granular view. For Document Boss this comes as part of M&A process once we are zoned in on a target and as you can probably guess does not come without a cost. :-)Mark Edwardshttps://www.blogger.com/profile/00520213352119926977noreply@blogger.comtag:blogger.com,1999:blog-1327817963221003960.post-24010631168281285692009-02-28T09:07:00.000+00:002009-02-28T09:07:00.000+00:00Good post on vendor numbers, but it would be fanta...Good post on vendor numbers, but it would be fantastic if you took it one step further: <BR/><BR/>These days, plenty of Bloggers tend to focus on WCMS vendor revenues, but no one has critically been looking into the split of revenues. <BR/><BR/>First, some WCMS vendors produces a vast range of products. How much of comes from their WCMS (I don't think the vendors will deliver or can deliver such numbers)? But an estimate would be great.<BR/><BR/>Also, is it services or raw license sales? For example, going to the Fatwire press release, <A HREF="http://www.fatwire.com/cs/Satellite?c=FWText&childpagename=FW%2FLayout&cid=1218036791948&p=1218036776116&packedargs=ulclass%3Dapproach-list&pagename=FW%2FWrapper" REL="nofollow"> Fatwire Reports...</A>, it becomes obvious that the increase in revenue is fueled by a high 60% growth in services and 30% growth in licenses revenues.<BR/><BR/>Some vendors has changed this year from a previous strict partner channel to also supply services (e.g. Ektron): By shifting tactics, companies will be able to grow their revenue significantly (would usually grow services revenue, but would result in a license sale drop. Implementation costs is usually 2-4 times higher than software costs).<BR/><BR/>It would be great to see a revenue split for the individual vendors on: services, training, license sale. <BR/><BR/>And while looking on the number for license revenue, how much of that is driven by recurring upgrade agreements (which for older vendors should be the vast majority)? I would expect to see older vendors with a long tail of existing customers get 80% or more of their revenue from upgrade agreements).<BR/><BR/>Also, when looking at growth numbers, please remember that past years upgrade fees affect the license revenue growth: Assuming that Fatwire claims a yearly upgrade fee of 20%, the real license growth in new licenses is closer to 10% as their license revenue growth accumulated was 30%<BR/><BR/>Not picking specifically on Fatwire, - I am sure a number analysis will paint the same picture for almost all vendors.<BR/><BR/>It would be great to see a more in-depth data analysis by: New licenses revenue, upgrade revenue, Services revenue and "other" revenue.Anonymousnoreply@blogger.com